lseg investor presentation (for pf) · lch otc revenue growth to continue at double-digit 2017-2019...

Investor Update 12 June 2017

Welcome Xavier Rolet Group CEO

London Stock Exchange Group

Topic Presenter Title

Welcome

Strategy Overview Xavier Rolet CEO, LSEG

Information Services

Mark Makepeace

Caroline O’Shaughnessy

Waqas Samad

Group Director of Information Services, LSEG and CEO, FTSE Russell

Global Head, Sales & Marketing

CEO, Benchmarks, Fixed Income and Multi Assets

Capital Markets Raffaele Jerusalmi

Michael Davie

Group Director of Capital Markets, LSEG and CEO, Borsa Italiana

Head of Rates, LSEG and Chairman, CurveGlobal

Break

LCH

Suneel Bakhshi

Daniel Maguire

Paddy Boyle

Bruce Kellaway

CEO, LCH Group

COO, LCH Group and Global Head of Rates & FX Derivatives

Global Head of ForexClear

Global Head of RepoClear, EquityClear & Collateral

COO/CIO Chris Corrado COO/CIO, LSEG

Capital Management /

Financial track record David Warren CFO, LSEG

Q&A Moderated by Paul Froud Head of Investor Relations, LSEG

Agenda

What you’ll hear today


Group strategy

working well Diversified range of businesses positions us well to meet an evolving macroeconomic and

political landscape

Information Services Further growth to come from FTSE Russell – The Yield Book and Mergent provide new

opportunities to expand products, sales and efficiency

Capital Markets Working with clients to offer new services – CurveGlobal, ELITE, Turquoise Plato

LCH OTC growth to continue and further efficiency savings to drive significant improvement in

EBITDA margin

Technology Group scale and resources to support business growth and efficiencies

Strong financial

position Revenue growth and cost control – operating leverage and improved operating margins for

increased shareholder returns

Diversified, resilient and international markets infrastructure business

Unique Open Access model, working in close partnership with customers


Intellectual Property Indexes, Data and Technology

Capital Formation Primary and Secondary markets

Risk and Balance sheet

management

Clearing, Settlement and

CSD services

Successful strategy executed across three key areas

SEDOL

Real Time Data

An interconnected business

Selected LSEG business lines and areas of focus

(1) Post completion of Citi Fixed Income Indices and The Yield Book

UnaVista

RNS

CC&G


Monte Titoli

c.4,000 employees based in 18 countries, delivering services worldwide

115 Issuers on

London Stock

Exchange

operate in c.115

different

countries

#1 OTC Clearer Over $665tr

cleared in 2016,

representing

90%+ of the

global market

40 MillenniumIT technology

deployed in more than 40

venues around the world

$15tr FTSE Russell

largest global

index provider

with c.$15tr in

benchmarked

AUM(1)

800+ Companies,

advisers and

investors from 26

countries part of

innovative ELITE

community

1500+ Firms around the world using

UnaVista to meet regulatory

reporting needs


(1) Post completion of Citi Fixed Income Indices and The Yield Book LSEG offices

Proven strategy with increasing scale

671.4 628.3

674.9

814.8 852.9

1213.1

1418.6

1657.1

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 CY2015 CY2016


6% Technology

Services &

Other

36% Post Trade

Services

22% Capital

Markets

36% Information

Services

14%

2009–2016 Income CAGR 2016 Income by Segment

Long term growth diversification by business activity

Continuing operations only

Diversification by both income and expenses across GBP, EUR and USD


Continuing operations only, expenses include cost of sales

2016 Income

Diversified by currency

20% USD

40% GBP

35% EUR

5% Other

£1,657.1m

2016 Expenses

11% USD

54% GBP

28% EUR

7% Other

£966.4m

207.5 169.3 171.8 218.9 306.3 348.7

517.4 594.7


263 302.1

356.5

FY2014 CY2015 CY2016


Growth in Information

Services driven by greater use

of benchmarks, indexes, data

and analytics, smart beta, ETFs,

fixed income indexes and

new products and geographies

Growth in LCH driven by further

OTC clearing and new services

Regulatory landscape –

provides opportunities, e.g.

EMIR and MiFID II

16% 2014-2016

Revenue

CAGR

16% 2009-2016

Revenue

CAGR

Strong growth across both ISD and LCH

Continuing operations only

— MiFID II implementation from January 2018

— MiFID II mandates Open Access across financial markets infrastructure

— Will promote greater competition, transparency and innovation through unbundling of

services and fees

— Transparency and consumer choice will create deeper pools of liquidity, reduce costs

and lead to better risk management

— LSEG well positioned with both Open Access and customer partnership at the core of

our business model and proven track record (LCH, CurveGlobal, Turquoise, MTS)

— Our Open Access business model is MiFID II ready


MiFID II opportunities

Our clients have absolute choice across our value chain - fundamentally different

approach to peers


SwapClear directly licensed to clear in many

jurisdictions including: EU, UK, US, Australia,

Canada, Japan, Hong Kong and Switzerland

SwapClear is a global service SwapClear – clearing volumes (May 2017)

18 International

currencies are

cleared

55 Clients from 55

countries

Euro-denominated IRS clearing

60% USD

12% GBP, CAD,

Asian & Other

European

7% EUR EU

originated

21% EUR non-EU

originated

LSEG operates authorised clearing houses in the UK, US and

Eurozone with global and domestic licences, operating within and

across multiple jurisdictions around the world

— All CCPs EMIR authorised or equivalent

— LCH in London, New York and Paris are

DCO authorised and supervised by CFTC

— LCH is only European-based CCP

qualified to clear FCM market in US

— LCH clears listed and OTC products

— CC&G clears fixed income, repos,

equities and derivatives


We are well positioned to

serve our clients,

wherever our clients

choose to clear

LSEG well positioned Operating clearing houses in multiple jurisdictions

FTSE Russell Double-digit growth to continue 2017-2019

Sustainable and attractive margins over the same period

LCH OTC revenue growth to continue at double-digit 2017-2019

Accelerating EBITDA margin growth - approaching 50% by 2019

(2016: 35.6%)

LSEG Operating expenses held at c.4% p.a. 2017-2019 increase while

Group continues to deliver revenue growth and improved margins

Next phase cost saves of £50m p.a. by exit 2019

EBITDA margin of c.55% by 2019 (2016: 46.5%)


Further growth and enhanced returns

Increasing operating leverage - increasing operating margin

Information Services

Division

Mark Makepeace Group Director of Information Services

CEO, FTSE Russell

Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Agenda

Information Services Division (ISD) Overview

Mark Makepeace, Group Director of Information Services and

CEO, FTSE Russell

Index Growth and Future Opportunities

Caroline O’Shaughnessy, Global Head of Sales & Marketing

Fixed Income Opportunities, The Yield Book & Citi Indexes

Waqas Samad, CEO Benchmarks, Fixed Income and Multi-Assets

Summary

Mark Makepeace


Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

134 174 197

349 409

97 91 84

82

91

75 84 83

86

95

FY 2013 (March 13year end)


CY 2014 CY 2015 CY 2016

Other

Real TimeData

FTSERussell

Double-digit growth Sustainable margins

Source: LSEG Annual Reports FY2013-2016. Total may not sum due to rounding

Acquisition of Russell

Indexes (Dec 2014)

£349m £306m

£364m

£595m

£517m

£1,657m

£595m Information

services

£447m LCH

£368m Capital Markets

£146m CC&G &

Monte Titoli

£88m Technology

£12m Other

CAGR of 18% Information Services revenue

CAGR of 18% from FY2013-2016

Organic & inorganic Combination of organic &

inorganic growth drivers

Growth in Information Services revenue


Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Diverse revenue mix Market tailwinds

Benchmarks & analytics Exchange data & regulatory

reporting Data solutions

Real-time pricing data

Reference data

Underlying trends driving double-digit growth

UnaVista

Increasing sophistication of

investors expanding range of

benchmarks & analytics required

─ Exposure to emerging

markets, including China

Switch to passive

─ Smart Beta

─ Factor-based investment

─ ETF growth

Multi-asset and global investment

strategies

Demand for value added data and

analytics

Cloud computing, Artificial

Intelligence and data integration

innovations

Increasing regulation

─ MiFID II

Client demand for efficient, out-

sourced solutions

Automation & digitisation

Corporate events Citi Fixed Income Indexes

Multi-asset data

Source: LSEG. Post completion of Citi Fixed Income Indices and The Yield Book


Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Sources: (1) Pro-forma FTSE Russell and The Yield Book, Dec 2016; (2) MSCI, 2016; (3) S&P, 2015 (latest published); (4) eVestment; Morningstar.

Total By client segment4

FTSE Russell

MSCI

S&P Dow Jones

~ $15tr Total assets

benchmarked1

~ $11tr Total assets

benchmarked2

~ $7.5 tr Total assets

benchmarked

to S&P 5003

20% Fixed Income

80% Equity

94% Equity

6% Other

100% Equity

45% Other

55% Institutional

47% Other

53% Institutional

63% Other

37% Institutional

By asset class4 By investment strategy4

79% Active

21% Passive

85% Active

15% Passive

70% Active

30% Passive


Index business has global scale Broad & deep opportunity set

Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

FTSE Russell & The Yield Book The largest multi-asset index company globally

Strategic Rationale

— Establishes FTSE Russell as

global leader in fixed income

index and analytics and multi-

asset capabilities

— Targeted business expansion

with addition of over 300

institutional client

relationships

— Significant operational

expansion in US and Asia

Consideration

$685m Implied EV / 2016 EBITDA

multiple of 14.9x

Synergies

$30m 3 year revenue synergies

$18m 3 year cost synergies

EPS accretive in year 1

Products

— Comprehensive global fixed

income analytics and indexes

— The World Government Bond

Index (WGBI) is among the

most widely followed globally

— Sophisticated modelling and

analytics capabilities of The

Yield Book widely used by fixed

income investors

Source: RNS, “LSEG to acquire The Yield Book and Citi Fixed Income Indices”, 30/05/2017. (1) Based on a pro forma estimate of the central costs to be allocated to the

Business under LSEG ownership

$15tr

FTSE Russell & The

Yield Book combined

AUM

20% Fixed Income

80% Equity

$107m

2016 revenue

$46m

2016 EBITDA1

for the Yield Book and Citi Indexes


Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Mergent allows creation of new products for index clients and provides

scalable data operations at low cost

Source: FTSE Russell, 2017.

Creation of complementary data products for index users from higher

quality data sets and long-dated histories

Scalable & low-cost operations in US and Asia

Multi-asset content and product for index and analytics business

Flexibility in data use for new products through IP ownership

FTSE Russell & Mergent New index products & scalable data operations


Index Growth, Clients and

Products

Caroline O’Shaughnessy Global Head of Sales & Marketing

Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Core client base driving growth Global adoption of products & network effect

Global

relationships

Diverse

product

range

Core index

─ Cap-weighted

─ Smart beta / Factors

─ Custom

Multi-asset

─ Equity

─ Fixed Income

─ Real Estate

Global

─ Developed & emerging markets

─ China

─ Futures & options:

CME, CBOE, ICE and SGX

─ Exchange partnerships:

JSE, TSEC, Bursa Malaysia

Embedded

in the entire

investment

process

Sources: LSEG Annual Report 2016, eVestment, Morningstar, FTSE Russell

investment

banks

Top 10 top asset managers

97 / 100 of the largest US

plan sponsors

48 / 50

~$15tr

Active & passive assets

benchmarked

~$500bn ETF assets

~$3tr Global passive assets

#1 US equity

institutional assets

benchmarked

#1 UK equity mutual funds

benchmarked

#1 Indexer for China

A shares ETFs

#2 US equity ETF

AUM

benchmarked

derivatives contracts

traded on 15 exchanges

globally in 2016

221m

#2 Fixed income institutional

assets benchmarked

globally


Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

High quality recurring revenue Range of clients & licensing models

2016 Revenue Split1

45% 55%

Asset linked

Clients

Derivatives Exchanges

Stock Exchanges

Investment & Actuarial Consultants

Asset owners

Active Fund Managers

Passive Fund Managers

Investment Bankers & Brokers

FTSE Russell asset linked revenues

Derivatives

Non-ETF

Passive Funds

55% 45%

2014 2015 2016

Subscription

Recurring revenues2

Source: LSEG, 2016. Note: (1) Rounded %; (2) Pro-forma inclusion of Russell Indexes in 2014

ETF

+£21m +£44m

FTSE Russell

revenue:

£409m 2016


Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Smart Beta

Passive and ETF Emerging Markets including China

Ability to commercialise trends Index growth through deep client relationships

Source: (1) BlackRock, 2016; (2) eVestment; (3) ETFGI; (4) Morningstar; (5) BCG, Doubling Down on Data; (6) Credit Suisse “Emerging Capital Markets: the road to 2030”;

(7) SGX, December 2016 – Market Statistics

Fixed Income and multi-asset

2016 2020F 2025F

2013 2016

$282bn

$1,000bn

$2,400bn

70m

22m

$2tr+ AUM increase Smart Beta ETF AUM growth to 2025F1

4.5x4 Passive mutual fund AUM grew

18% in 2016, 4.5x faster than

actively managed funds

42%5 Passive forecasted to comprise

42% of cumulative net flows to

2020

.

+47% CAGR FTSE China A50 index futures

volume +47% CAGR since 2013

Global institutional

AUM by asset class2

Global ETP AUM by

asset class3

China A50 futures contracts traded7

18% Fixed income

75% Equity

7% Other

42% Fixed income

54% Equity

4% Other

ETF AUM 2012-20164

$1.9tr $2.3tr $2.7tr $3.0tr $3.6tr

2012 2013 2014 2015 2016

22% 14%

39% 36%

Equity market Corporate debt

2014 2030F

39% Emerging markets forecast to

make up 39% of global equity

market value by 2030

Emerging markets capitalisation6


Fixed Income, The Yield

Book & Citi Indexes

Waqas Samad CEO Benchmarks, Fixed Income and Multi-Asset

Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell 2014 Pre - 2000 2013

The Yield Book Accelerates FTSE Russell fixed income strategy

FTSE UK

Gilts

FTSE TMX

JV

Bank of

China (HK)

Offshore

RMB Bond

Index

FTSE ASFA

Australia

Bond Index

FTSE TMX

acquires

MTS Indexes

2017

LSEG

acquires

Mergent

LSEG to

acquire The

Yield Book

Adds Canadian

fixed income

indexes &

analytics

Leading source

of US corporate

and municipal

bond terms and

conditions

Builds on

equity index

success in

China

Asset owner-

led innovation

Leading

benchmark for

UK Gilt

investments

Leading global

fixed income

index and

analytics

provider

2016

Leading

Eurozone

government

bond indexes

Page 27 London Stock Exchange Group

Post completion of Citi Fixed Income Indices and The Yield Book

Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Broadening client relationships Complementary and synergistic offering

Product

— Family of fixed income benchmarks with 35+ years history

includes the widely followed World Government Bond Index

(WGBI)

— Leading fixed income analytics platform with 25 years of

history

— Extensive fixed income securities database

— Opportunity to use FTSE Russell sales capability to

develop index business and products

Combined assets under management

14% The Yield Book &

Citi Fixed Income

Indexes

80% FTSE Russell

Equity

Clients

— $107m revenue from analytics and index services in 2016

— 300 clients globally, including 200 fixed income asset

managers and asset owners

— Used by most leading US fixed income managers

— Citi will remain a significant client and long-term partner

— Significant operations in Asia

~$15tr AUM

6% FTSE Russell

Fixed Income


Source: LSEG, Citi. Post completion of Citi Fixed Income Indices and The Yield Book

Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Combination of The Yield Book and Citi Fixed Income Indexes with FTSE Russell

creates a unique multi-asset index company with ~$15tr AUM

Accelerate

commercialisation of

index business and

FTSE Russell growth

New fixed income and

multi-asset index and

analytic products

Deepen and extend

client base through

FTSE Russell sales

organisation

EPS accretive in year 1

$48m synergies in 3 years

EBITDA margin will increase to match FTSE Russell

A unique index company Diversified product range & global scale


Source: FTSE Russell. Post completion of Citi Fixed Income Indices and The Yield Book

Summary

Mark Makepeace Group Director of Information Services

CEO, FTSE Russell

Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

Successful track-record of value creation through acquisitions

3 year synergy

targets achieved

3 year synergy target

delivered ahead of

schedule

Leading provider of

proprietary fixed

income and global

equity data

Low cost data collection

model

Mergent data to drive

index adoption and new

product development

Accelerates data and

analytics offering, builds

US and Asia presence and

fixed income client base

globally

3 year synergy target:

2011 2014 2017

£18m Revenue

£10m Cost

£18m ($30m) Revenue

£46m ($78m)

Cost

$30m

Revenue

$18m Cost

2016

Source: FTSE, Frank Russell Company, Mergent & The Yield Book and Citi Fixed Income Indices acquisition announcements.

Post completion of Citi Fixed Income Indices and The Yield Book


https://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&ved=0ahUKEwin7dfL9K7UAhWFAJoKHT-RAKoQjRwIBw&url=https://bionews-tx.com/news/2014/07/01/texas-drug-developers-opexa-bio-path-holdings-added-to-russell-indexes/&psig=AFQjCNESZIDG7DbPap-vstG5nY22ghCKpQ&ust=1497034053433050

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Technology

Info Services

Capital Markets

Group

Post Trade

FTSE Russell

— Active to passive

— Investment innovation

— Increasing

sophistication of

investment processes

— Index industry

consolidation

— Global sales

capability

— Recurring revenue

and high retention

rates

— Embedded in global

investment processes

— Open access

— Global leader in multi-

asset indexes

— Diverse and

innovative products:

global, multi-asset,

smart beta, analytics

— Consistent double-

digit growth

— Organic and

inorganic growth;

effective synergy

delivery

— Scale business

creates efficiencies

Positive secular

trends

Robust business

model

Strategic focus &

ambition

Proven execution

capability

FTSE Russell will continue to deliver high levels of top line growth through organic and

inorganic strategies

+ + +


Continued double-digit growth Attractive and sustainable margins

Capital Markets Division

Raffaele Jerusalmi Director of Capital Markets

CEO, Borsa Italiana


Growth Opportunities in Capital Markets

Raffaele Jerusalmi

Director of Capital Markets

CEO, Borsa Italiana

Opportunities for CurveGlobal

Michael Davie

Chairman, CurveGlobal

Agenda

Leading primary and secondary markets


Capital Markets Total Income: 2013 ‒ 2016

77 89 89 91

127 139 144

165

92

105 98

113 £297m

£333m £330m

£368m

CY 2013 CY 2014 CY 2015 CY 2016

Secondary Markets - Fixed income, derivatives & other

Secondary Markets - Equities

Primary Markets

Capital Markets EBITDA margin of 51% in 2016

Capital Markets has delivered growth across varied market conditions

£1,657m

£595m Information

services

£368m Capital

Markets

£146m CC&G &

Monte Titoli

£447m LCH

£88m Technology

£12m Other

LSEG 2016 Total Income by segment

Total may not sum due to rounding

A digital platform bringing together listed companies,

institutional investors and financial intermediaries to

enable easier interactions and increase productivity

Launched in 2015

A full-service programme designed to

share best practices and increase growth

opportunities, including the understanding

of capital markets

Launched in 2012

Catalyst for growth

An online private placement platform

designed to streamline the capital

raising process for companies

Launched in 2016

ELITE Supporting private high growth SMEs


ELITE is a programme that helps fast-growing private companies prepare and structure for further

growth through sharing experiences, access to financing opportunities and education.

(1) Source: Global insights from regional Alternative Finance studies, KPMG; Cambridge Centre for Alternative Finance (Oct 2016). Excludes China alternative finance volumes of

$101.69bn. Converted to EUR at BoE 2015 annual average exchange rate (0.90 EUR/USD).

800+ Growing community of over

800 companies, investors and

advisers

€44bn ELITE companies generate

€44bn revenue, with over

196,000 employees across 34

sectors

26 The ELITE community spans

26 countries across Europe

and beyond

€39bn Global alternative finance

market volume of €39bn in

2015 (1)

Connection to investment opportunities Capital for growth

ELITE Growth ELITE Connect ELITE Club Deal

Delivering MiFID II solutions In partnership with customers


Turquoise Plato Block Discovery™ Value Traded

Award winning innovation designed in cooperation with Plato

Partnership, a unique collaboration with buy-side and sell-side firms

Average trade size 30 times industry dark pool average

0

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UR

mill

ion

s

Turquoise Plato

partnership announced

September 2016

Equities Facilitating MiFID II compliant dark liquidity on

LSE plc through intra-day auctions and Mid

Price Pegged Orders

ETFs

Request-for-quote functionality for ETFs and

ETPs launched in UK and Italy, providing a

solution for customers to execute large

bilateral trades on-exchange

TRADEcho

Multi-asset, pan-European pre- and post-trade

reporting solutions to help customers meet

MiFID II obligations, in partnership with Boat

Services

Turquoise

SwapMatch

A neutral arranging mechanism to match

clients’ block interests in OTC equity total

return swaps to support balance sheet

efficiency

MiFID II ready solutions – delivering innovative services providing choice and flexibility to customers

Selected Regulatory-Driven Client Solutions


Fixed Income Opportunities for growth across multiple segments

Significant presence across inter-dealer, dealer-to-client and retail trading segments. Positioned for growth as regulatory

tailwinds and market participants increasingly support shift to electronic trading.

LSEG Institutional & Retail Fixed Income Platforms

A leading electronic platform for interdealer and dealer-to-client European bond and repo trading

Average daily volumes exceeding €100bn and 50% share of inter-dealer European government bond trading

in 2016 (1)

US presence via MTS BondsPro provides all-to-all liquidity in USD and non-USD corporate bonds and

emerging market debt

International Securities

Market (ISM) Recently launched MTF for primary debt issuance targeted at institutional and professional investors

operating alongside the LSE Main Market and Professional Securities Market

MOT & ExtraMOT A leading position in terms of trading and turnover on Italian retail market, supporting investors’ access to

bonds, debt and government securities

EuroTLX Dedicated to investors trading in retail size, with liquidity providers present for each instrument across a

wide range of fixed income securities

ORB Provides investors with access to on-screen secondary market for UK debt instruments in retail size, with

over 60 gilts and 100 corporate bonds available for trading

Further growth opportunities arising from closer integration of fixed income assets across LSEG

(1) Source: Celent 2016 European Fixed Income Market Sizing (Oct 2016)

Reta

il

Ins

titu

tio

na

l

CurveGlobal

Michael Davie Chairman, CurveGlobal

LSEDM

— FCA regulated exchange

— Robust trading infrastructure

and connectivity

— Rates futures: EUR and GBP,

short-term and long-term

— Open access by design

— IP, brand, capital

— The largest Rates margin

pool and default fund

— 90%+ share of global cleared

OTC Rates(1)

— LCH Spider portfolio

margining tools

Utilising open interest in LCH for portfolio margining

benefits, with access to a single default fund across

OTC and listed trades

Partnership approach with customers driving

innovation 1

Delivering capital efficiencies to market through

LCH 2

USPs


Innovation in partnership with customers

(1) Source: ClarusFT

(1) Source: LSEG analysis. Based on total short term interest rate (STIR) derivatives open interest on CurveGlobal, ICE (EUR and GBP) and Eurex (EUR only) as at 24 May 2017

2017 Priorities

Build the community — Utilise the dealer bank shareholder cornerstone to grow adoption across more banks (both

house and FCM), market-makers, proprietary trading firms and the buy-side

Evolve connectivity — From traditional fixed income point-to-point via vendor offerings to full smart order router

deployment

Evidence best

execution — Leverage MiFID best execution driver – compelling, objective analysis of CurveGlobal liquidity

Facilitate optimisation — Encourage block trading for risk transfer and optimal risk taking

— Create tools and community to enable smarter risk management

0

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40,000

60,000

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30 Sep 14 Oct 28 Oct 11 Nov 25 Nov 09 Dec 23 Dec 06 Jan 20 Jan 03 Feb 17 Feb 03 Mar 17 Mar 31 Mar 14 Apr 28 Apr 12 May

Contr

acts

Tra

ded

(s

ingle

sid

ed)

ContractsTradedOpen Interest

CurveGlobal Weekly Trading Volume & Open Interest

1.1% share of STIR

open interest (1)


Steady progress through early stage adoption

Further opportunities and drivers of growth

Portfolio

margining for LTIR

futures

— Could potentially enable material duration offset and “full curve” portfolio margining for some

customers

— Of particular interest to relative hedge fund community and their FCMs

— Sea change when individual traders are charged all end-to-end trading costs at point of

execution

Compression and

other post-trade

optimisation

— OTC notional continues to grow despite extensive use of compression services

— Opportunity to add CurveGlobal futures as replacement products, with potential for portfolio

margining in LCH

— Partnership with LCH, TriOptima, Quantile and others

Packaged trades — CurveGlobal can straddle the OTC-listed divide

— Symbiotic trading of Bonds, Futures & OTC swaps with OTF/MTF partners, cleared into LCH

Innovation - GBP

risk free rate

products

— Bank of England risk free rate decision for SONIA+ pending – market consultation during H2

2017

— CurveGlobal can list futures products for stand-alone execution, or in conjunction with OTC via

OTF/MTF partners, cleared into LCH

— Other risk-free rates also in scope (e.g. £SONET)


LCH Group

Suneel Bakhshi CEO, LCH Group

Agenda


Introduction

Rates and Credit

ForexClear

RepoClear and Net Treasury Income

Driving growth and operating leverage

Suneel Bakhshi, CEO, LCH Group

Daniel Maguire, COO, LCH Group & Global Head

of Rates & FX Derivatives

Paddy Boyle, Global Head of ForexClear

Bruce Kellaway, Global Head of RepoClear,

EquityClear & Collateral

Daniel Maguire, COO, LCH Group & Global Head

of Rates & FX Derivatives


— Customer driven business model, underpinned by our commitment to best

in class risk management and open access, leading to innovation and

unrivalled service adoption

— Regulatory tailwinds support growth in our core business – aimed to attract

further business through new services

— Universe and diversity of clearing participants continues to grow, creating

greater network effects across our business

— More asset classes in more geographies set to benefit from cleared and

uncleared services

Uniquely positioned as a leading global clearing house

A growing contributor to LSEG financial performance


110 138 157

191

146

160 115

117

62

60

56

82 4

31

33

58

£322m

£389m £361m

£447m


2014 2015 2016

OTC Non-OTC NTI Other

(1) LCH total income profile includes the migration of LME business to LME Clear in September 2014 (2) 2014 figures include 11 months only (3) Based on annualised figures for

2014 based on 11 months actual income (4) Other income includes non-cash collateral and compression fees

LSEG 2016 Total Income by segment LCH Group Total Income: FY2014 – 2016 (1)

(2)

(4)

Total may not sum due to rounding

£1,657m

£447m LCH

£595m Information

services

£146m CC&G &

Monte Titoli

£368m Capital

Markets

£88m Technology

£12m Other

Rates & Credit

Daniel Maguire COO, LCH Group

Global Head of Rates & FX Derivatives


Delivering against growth opportunities

Service Revenue Targets (1) Current Status

SwapClear

Client clearing €30m - 40m p.a. Achieved in 2016

Compression €10m - 15m p.a. Achieved in 2016

Inflation swaps €10m p.a. On target to achieve in 2017

ForexClear €25m - 40m p.a. On target

European Repo service €10m - 20m p.a. On target

We have delivered, or are on track to deliver, the revenue targets and key initiatives presented

at the May 2015 Post Trade Investor Day

Update on

Rates Portfolio

Margining

— A core component of LCH’s risk management offering across the entire Rates spectrum

— LCH Spider, the open access portfolio margining service for interest rate derivatives,

went live in May 2016, starting with Short Term Interest Rate Futures against SwapClear

— Clearing services for CurveGlobal went live in September 2016

— LCH Spider II, portfolio margining of Bund, Bobl, Schatz and Gilt Futures against

SwapClear, scheduled for go live by Q4 2017 (subject to regulatory approval)

(1) Incremental annual revenue opportunities relative to CY 2014 baseline, to be achieved by exit 2018

2010 2016 Future

Trend

Number of clearing members 35 107

Number of dealers 52 197

Number of members offering client clearing 21 49

Number of active clients (in year) 5 767

Number of clearing countries 11 55

Average daily trades 2,969 14,792

Average daily USD notional 0.72tr 2.63tr

Total GBP Initial Margin (IM requirement) £8.1bn £85.3bn

Geographic hubs 1 4


SwapClear

(1) Total income reported is converted to Euro at prevailing FX rates and includes revenues from clearing, compression services and NTI (2) Source: ClarusFT

Continued global leadership in OTC rates clearing

Headline Statistics

€36m

€62m €79m

€145m

€188m

€253m

€315m

0m

50m

100m

150m

200m

250m

300m

350m

2010 2011 2012 2013 2014 2015 2016

SwapClear Total Income Growth (€m) (1)

44% 2010-2016

CAGR

Successfully expanding and diversifying revenue streams, including client

clearing, compression services and LCH SwapAgent

Regulatory tailwinds supporting growth in core business and new product

areas

90%+ Share of clearing

notional value (client

and member) (2)


Significant increase in client volumes, notional cleared and revenue contribution across

EMEA, North America and Asia Pacific, with further growth expected

SwapClear Client Clearing

2014 2015 2016

Cleared Notional ($US tr) 122 93 139

Cleared Notional Market Share (1) 74% 76% 87%

Cleared Trades (000s) 410 680 950

Cleared Trades Market Share (1) 49% 61% 75%

Compressed Trades (000s) 340 580 810

Outstanding Notional ($US tr) 12.6 16.0 22.9

Outstanding Trades (000s) 110 180 270

Initial Margin ($US bn) 9 19 44

Number of clients clearing 251 348 579

Headline Statistics

108

985

1,576

2,618

3,688

4,534

-

1,000

2,000

3,000

4,000

5,000

2012 2013 2014 2015 2016 2017YTD

Average Daily Client Trades

Future growth drivers include mandated EU client clearing and

extension of non-deliverable IRS to additional Asian currencies

(KRW, INR, CNY) to meet global and local client demand

Expansion of the client community strengthens network effects

to drive growth in existing and new products

+27% Continued growth in

2017 – client trades

up 27% y-o-y in Q1

2017

+55% Increase in number

of clients clearing in

Q1 2017 versus prior

year

Source: (1) ClarusFT (2) 2017 YTD as of 31st May 2017

(2)


Continuing to deliver significant value to members and clients

SwapClear compression services

Notional Outstanding (USD tr) Notional Compressed (USD tr) Cleared and Compressed Notionals (USD tr)

Compelling benefits for members and clients from capital and

operational savings are expected to drive further growth in

compression services

LCH compression services capturing increased share of the total

compressed, whilst partnering with other service providers on an

open access basis

$21bn Estimated capital

savings realised by

members from

compression

services in 2016

+64% Notional

compressed in Q1

2017 was 64%

higher than any

previous Q1 period

251

666

281

384

252

Notionaloutstanding31/12/2015

Grossnotionalcleared

Maturingtrades

Notionalcompressed

Notionaloutstanding31/12/2016

0

50

100

150

200

250

300

350

400

450

2013 2014 2015 2016

Member Client

0

50

100

150

200

250

300

350

400

450

2013 2014 2015 2016

Member Client


Uncleared Margin Rules driving clearing volumes and benefits for members and clients

SwapClear Inflation Swaps

30 43 33 30

171 170

220

189

231 231

397

265

335

0

50

100

150

200

250

300

350

400

450

0

50

100

150

200

250

300

350

400

450

May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17

EUR GBP USD

Inflation Swap Volume (USD bn)

Blended rate compression for inflation swaps to be launched in Q4

2017, allowing participants to realise greater operational and capital

efficiencies to support further volume growth

$1.1tr Cleared in 2016 with more than 120

buy-side and sell-side participants

+218%

6% 8%

13%

17%

23%

20% 18%

22%

31%

0%

5%

10%

15%

20%

25%

30%

35%

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

3% 1%

3%

10%

7%

18%

23%

26%

21%

0%

5%

10%

15%

20%

25%

30%

Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017

(1) Q2 2017 data as of May 31st 2017. (2) Subject to regulatory approval. Source: LCH, ICE Clear Europe cleared notional data


Clearing the broadest set of CDS across both European and US underlyings

Drivers for further growth

— Introduction of Uncleared Margin Rules and

European clearing mandate for index CDS

— Onboarding of Select Members uniquely

clearing at LCH SA

— Onboarding of buy-side clients ahead of the

Category 2 clearing obligation

— Launch of an industry-first clearing service for

Credit Index Options in Q3 2017 (2)

CDSClear

CDSClear – Share of Overall Indices (1)

CDSClear – Share of Overall Single Names (1)

+160% €449bn cleared in 2016, up

160% versus 2015

Performance

31% Share of overall indices at

31% in Q2 2017, up from 6%

in Q2 2015 (1)


14 dealers already committed, including:

A new service developed with dealer support to simplify the processing, margining and

settlement of uncleared derivatives

LCH SwapAgent

Category Bilateral

LCH

SwapAgent

Standardised collateral documentation X

Standardised trade processing X

Independent valuation agent X

Dispute elimination X

VM / coupon / interest netting X

Standardised risk factor calculation X

Standardised payment processing X

Cross-currency and swaptions

Uncleared Service Comparison: LCH SwapAgent vs. Bilateral

— LCH SwapAgent extends SwapClear infrastructure to the bilateral market without novation to a central

counterparty and default fund contributions

— Service launched in May 2017, to be followed by extended product offering to include cross-currency swaps and

swaptions

— Opens up new opportunities in uncleared services and the wider Rates market infrastructure, with quicker time

to market given lighter regulation versus cleared services

Winner: 2017 Financial News Post-

Trade Initiative of the Year

Service Adoption

ForexClear

Paddy Boyle Global Head of ForexClear

ForexClear – The FX Opportunity

(1) Source: BIS Triennial Central Bank Survey Global foreign exchange market turnover in 2016 (Dec 2016)

Instrument Category Average Daily

Turnover (1) LCH offering

NDFs $134bn Live today

Vanilla Options $151bn Live in Q4 2017

FX Swaps &

Deliverable Forwards $2,944bn

Some will clear alongside vanilla options

Some will clear as NDFs as a product substitute Spot $1,652bn

NDOs $22bn Likely to follow vanilla options

Currency Swaps $82bn Less obvious to clear as most risk excluded

from bilateral margin requirements

Exotics $81bn Challenging to clear due to limited liquidity

under stress

Economic incentives increasingly driving FX products into scope for central clearing

Current

ForexClear

focus


2018-19

ForexClear

focus

Not a

ForexClear

focus

LCH well positioned to address capital and margin challenges within the vast $5.1tr

daily FX market


A step-change in volumes following the introduction of Uncleared Margin Rules, with scope

for significant further growth

A strong foundation in NDF clearing ...

ForexClear: Cleared Notional and Total Trades

Additional volume growth expected with strong member and client

take up, additional phases of Uncleared Margin Rules and increased

interest in compression services

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700

800

900

1,000

Ma

r-1

2M

ay-1

2Jul-1

2S

ep-1

2N

ov-1

2Jan-1

3M

ar-

13

Ma

y-1

3Jul-1

3S

ep-1

3N

ov-1

3Jan-1

4M

ar-

14

Ma

y-1

4Jul-1

4S

ep-1

4N

ov-1

4Jan-1

5M

ar-

15

Ma

y-1

5Jul-1

5S

ep-1

5N

ov-1

5Jan-1

6M

ar-

16

Ma

y-1

6Jul-1

6S

ep-1

6N

ov-1

6Jan-1

7M

ar-

17

Ma

y-1

7

Tra

de c

ount

(‘000)

Cle

are

d n

otional ($

bn)

NDF Notional NDF Trades

(1) Average daily notional, cleared trades and

percentage growth figures are for Sep 2016 to

May 2017, compared to pre UMR which refers to

the 12 month period from Sep 2015 – Aug 2016

(2) Source: ClarusFT

+775% +600% in cleared notional

following Uncleared

Margin Rules

(UMR) in September

2016 (1)

in trade count

following UMR

in September

2016 (1)

$32bn 4,460 Average daily

notional, up from

$4.5bn pre UMR (1)

Average daily

cleared trades, up

from 510 pre UMR (1)

15% of total NDF market

now cleared,

including 35% of total

dealer NDF flow (2)

Alternative to deliverable

forwards for participants who

do not require delivery

G10 NDFs

Technically ready

and progressing

through

regulatory

approvals

Utilising the EM

NDF platform to

provide a cleared

solution

FX Options

A ‘clearing to settlement’ solution

for OTC FX options and

associated spot and forwards

trades, in partnership with

settlement provider CLS

14 Members

engaged

Technical

development nearing

completion and

regulatory approval

well advanced

Additional areas for growth

– Client clearing

– Compression services

– Tenor / currency extensions

– Margin optimisation


... provides a compelling platform for growth

58

Well positioned to target large pool of FX participants, including existing LCH network,

to support further service adoption

RepoClear and Net Treasury

Income

Bruce Kellaway Global Head of RepoClear, EquityClear & Collateral


RepoClear

A leading provider of clearing for cash bonds and repos across multiple European markets

LCH Nominal Volumes (all fixed income)

0

5

10

15

20

25

30

35

40

45

50

Q12007

Q12008

Q12009

Q12010

Q12011

Q12012

Q12013

Q12014

Q12015

Q12016

Q12017

Nom

ina

l V

alu

e (

in €

tr)

Ltd Nominal (in € tr) SA Nominal (in € tr)

— Highest ever nominal cleared in Q1

2017, with strong growth in Gilts

— Cost of leverage ratio means member

banks looking to net repos where

possible – increasing attractiveness of

central clearing

— Continued robust volumes relative to

wider repo market

— New Sponsored Clearing model will

bring benefits of clearing to the buy-side

— LCH SA’s expanded repo offering allows

members to benefit from risk offsets in

Euro-based repos through T2S


Collateral ‒ Net Treasury Income

Significant contributor to LCH Group performance, generating £82m of net treasury income

in 2016 (18% of total LCH income)

LCH Group Collateral Held1 (€bn) — Total collateral continues to grow –

both cash and non-cash

— Blended investment return on cash

remains stable and drives higher net

treasury income as collateral grows

— Investment options are diversifying –

e.g. central bank accounts, direct

buy-side investment counterparts and

FRNs

— Optimisation of investment

management has reduced risk and

associated capital consumption

within LCH

0

20

40

60

80

100

120

140

160

180

40

45

50

55

60

65

70

75

80

85

90

Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17

To

tal P

ort

folio

Cash / N

on-C

ash

Member Collateral Client Collateral Cash Non-Cash

(1) Excludes default funds

Driving growth and operating

leverage

Daniel Maguire LCH Group COO

Global Head of Rates & FX Derivatives


Driving growth and operating leverage

1) Deliver double digit income growth per annum through to 2019

2) Deliver EBITDA margin in LCH approaching 50% in 2019 (2016: 36%)

Financial Targets:

Growth Efficiency

Streamline and reduce LCH cost base, including

leveraging LSEG resources and scale

— Replace legacy systems with best of breed

technology, using LSEG solutions where

appropriate

— Leverage LSEG shared services company to

enable LCH to focus on core activities

— Drive future investment and resource allocation

based on clear product and service strategy

Continued expansion and diversification of revenue

streams

— Further growth in the user community to drive

incremental revenue from existing and new

services

— Aim to attract new business through unwavering

commitment to customer partnership, open access,

innovation and best in class risk management

Delivery of financial targets driven by:

Delivering best in class

capabilities

Chris Corrado Group CIO

Group COO

CIO / COO function


To be the enabler of LSEG as a leading

financial markets infrastructure provider

To provide safe, stable, and trusted

operations

To provide technology that provides our

businesses with competitive advantage

Delivering high quality infrastructure


In-source technology

via acquisition of high

quality, development

capability

Gain control of tech to

support future growth

and reduce costs

Large-scale offshore

facility

2009

In-sourcing and

expanding software

development, testing

and operations

management

capabilities

Addition of scale

operational centres

near-shore and

off-shore

2013 / 2015 2017

LCH implementation of

Millennium CCP

MiFID II readiness

Acquisition integration

Multiple emerging technology

proof of concepts

Utilise Mergent data

capabilities Group-wide

Align resources to business

unit needs

Strengthened management

team and operational controls

Delivery of critical

infrastructure and

efficiency initiatives

Business Services Ltd

(BSL)

Creation of Group-wide shared

service delivery centre

Reduced costs through

centralised technology

operations and back office,

leveraging low cost centres

Scalable; extension to

corporate functions in 2017

2016

LSEG 2016 costs1

Total:

£707m

Centralisation Creation of shared services company BSL; LCH back

office and technology integration with Group.

Leveraging scale Progressive off-shoring and near-shoring; delivering

value from acquisitions.

Lowering the cost of change Automation and simplification; Group PMO control;

introduction of enterprise architecture through

CTO function.

Enhancing speed to market Resources aligned to business needs; strategic

deployment of innovative technology; migration to

agile delivery methodology.

Efficiency enhancement initiatives

Scalable and efficient operations


(1) Expenses as reported in note 5 of the December 2016 financial statements excluding; depreciation, non-acquisition software amortisation and impairment; and amortisation of

purchased intangible assets and non-recurring items. All figures rounded to nearest million.

£160m

Other costs

£429m

Staff costs

£118m

IT costs ex staff

c.4,000 LSEG employees based in 18 countries, delivering services worldwide


LSEG offices

IT scale enables global customer service

Development/service centres

80:20 Target ratio of LSEG

technology staff

offshore : onshore,

moving from current

70:30 ratio

20% LSEG average

cost per head in

low cost centres

is c.20% of high

cost locations

2,520 Total LSEG

technology

employees(1)

Approx. technology FTE per location

USA, 220

Russia, 450 UK, 400

Italy, 200

Sri Lanka, 1,150

MillenniumIT, 900

Business Services Limited, 250

Malaysia, 100

(1) Includes Mergent data operations staff

— High performing, low-cost technology

enabling growth and efficiency

— As an open access Group, LSEG provides

technology to over 40 exchanges and

financial services infrastructure providers

— Key customer partnership projects such as

CurveGlobal and Turquoise Plato enabled

through Group technology capabilities

— Development of in-house solutions creates

new opportunities with 3rd parties, e.g.

clearing systems

— Flexible and efficient technology

capabilities are critical to acquisition

integration and value creation

LSEG customer partnerships deepen relationships

LSEG 2016 Technology revenue

65%

Software and

services

35% Hosting and

connectivity

Total:

£88m


Business application and operational value for LSEG

High impact technologies adapted to financial markets infrastructure

Distributed ledger

technology

Machine learning

& big data

Cloud-enabled

computing

— Resiliency / reconciliation

— Trade / pre-trade

— Custody / clearing &

settlement

— Business Intelligence

— Market Supervision

— Risk Analytics

— Infrastructure and

development flexibility

— Data management

— Cost reduction

Additional opportunities accessible via partnerships with customers, regulators, technology providers

Enhancing core businesses through new technology

London Stock Exchange Group Page 70

Capital Management / Financial track record David Warren Group CFO

2.0

1.1

1.7

2.1

1.9

1.2

1.4

1.0

1.5 1.6

London Stock Exchange Group London Stock Exchange Group Page 72

(1) FY 2012 Pro forma as if FTSE owned for whole year, FY 2014 pro forma as if LCH.Clearnet owned for whole year, 31 December 2014 and 30 June 2015 pro forma as if Frank Russell Co owned for

whole year. Operating Net debt : Adjusted EBITDA. Net debt excludes all cash and cash equivalents of LCH and £200m of further Group cash and cash equivalents held locally for regulatory purposes

Leverage1

31 December 2016

Operating net debt £882m

(31 December 2015: £1,273m)

Net debt: Pro forma EBITDA 1.1x

(excluding £848m restricted cash)

Adjusted for 2017

Net debt: 2016 Pro forma EBITDA

c.2.0x (includes Mergent acquisition,

£200m share buy-back and The Yield

Book and Citi’s Fixed Income Indices

acquisition, excludes restricted cash and

any 2017 free cash flow)

Ratings

LSEG: S&P long term A- and Moody’s

Baa1

Financial position

Facilities

257 373

250

300

343

586

227

2017 2018 2019 2020 2021

Undrawn

Drawn - Bonds

Drawn - Revolving credit facilities

Calendar year


Capital management framework

Balance Sheet Prudency

Maintain existing leverage target

of 1.0-2.0x Net Debt / EBITDA

Flexibility to operate within this range for normal investment /

development and to go above this range in the short term for compelling

strategic opportunities

Manage credit rating, debt profile, and regulatory requirements

Investment for growth

Preserve flexibility to pursue

growth both organically and

through ‘bolt-on’/strategic M&A

Selective inorganic investment opportunities - meeting high internal

hurdles

Continued organic investments

Ordinary dividend policy

Progressive ordinary dividend

policy

Progressive dividend - reflects confidence in strong future financial

position

Operating in target 2.5-3.0x dividend cover range

Interim dividend payment of 1/3 of prior full year dividend results

Other capital returns

If expect to hold surplus cash for

prolonged period

£200m on market buy-back currently being executed

Continue to keep options under review


Strong track record of progressive dividend payments

Dividend cover of 2.9x in 2016 now in targeted range

Share buy-back

10% 2009-2016

CAGR

£200m on market programme

commenced April

2017

Increasing shareholder returns Dividend and buy-back

22.5 22.5 24.7 26.1 27.2 28.4

36.0

43.1



324%

138% 134%

102%

51%

0%

100%

200%

300%

LSEG ExchangeGroups Avg.

Info ProvidersAverage

S&P 500 FTSE 100

(1) Total shareholder return represents the total return of stock to investors (i.e. capital gain / share price appreciation plus dividends). Exchange groups included in average:

LSEG, CBOE, NDAQ, ICE, CME, ASX, DB1, BM&F, HKEX, SGX; Info providers included in average: S&P Global, MSCI, Thomson Reuters, FactSet.

Source: LSEG analysis; Total shareholder returns sourced from Bloomberg

Rank Company TSR Return

1 Ashtead group 907.1%

2 Micro Focus International 560.3%

3 Barratt Developments 500.2%

4 Taylor Wimpey 463.9%

5 Persimmon 452.1%

6 St. James’s Place 345.5%

7 Provident Financial 335.4%

8 London Stock Exchange Group 324.2%

9 Mondi 293.2%

10 Paddy Power Betfair 276.8%

Total shareholder returns1 2011-2016 LSEG in Top 10 for FTSE 100 TSR 2011-2016

Total Shareholder returns

FTSE Russell Double-digit growth to continue 2017-2019

Sustainable and attractive margins over the same period

LCH OTC revenue growth to continue at double-digit 2017-2019

Accelerating EBITDA margin growth - approaching 50% by 2019

(2016: 35.6%)

LSEG Operating expenses held at c.4% p.a. 2017-2019 increase while

Group continues to deliver revenue growth and improved margins

Next phase cost saves of £50m p.a. by exit 2019

EBITDA margin of c.55% by 2019 (2016: 46.5%)


Further growth and enhanced returns

Increasing operating leverage - increasing operating margin

Appendix: Speaker biographies


Today’s presenters

Chris was appointed Group COO and Group

CIO in November 2015. He was previously

Managing Director at MSCI, CIO/CTO,

responsible for technology, data services

and program management from 2013.

Chris has more than thirty years of global

experience in managing technology platforms

and transformational change in the financial

services industry. Prior to joining MSCI, Chris

held a variety of senior CTO roles in leading

banks, including Morgan Stanley and Deutsche

Bank. He has also worked for high growth

technology companies as CTO at eBay, CIO at

AT&T Wireless, and SVP of Technology,

Strategic Initiatives and Business Architecture

at Asurion, the mobile technology protection

company. He began his career at IBM.

David Warren

CFO, LSEG

Chris Corrado

COO/CIO, LSEG

David was appointed LSEG’s Chief Financial Officer

and joined the Board as a Director in July 2012.

Prior to joining LSEG, David spent nine years as CFO

at Nasdaq OMX where he was responsible for all

financial operations. This was followed by two further

years there as a Senior Advisor to the CEO. Before

joining Nasdaq OMX David, whose career also

includes seven years at Credit Suisse First Boston,

had already held a number of senior finance roles.

Xavier Rolet

CEO, LSEG

Xavier joined the Board of LSEG in March

2009 and was appointed CEO in May 2009.

Previously Xavier had been a senior

executive at Lehman Brothers from 2000 to

2008, most recently as CEO in France.

Xavier has also held senior positions at

Dresdner Kleinwort Benson (1997–2000),

Credit Suisse First Boston (1994–96) and

Goldman Sachs (1984–94). Until July 2010

he was a Non-Executive Director of LCH.


Mark Makepeace

Group Director of Information Services,

LSEG and CEO, FTSE Russell

Mark was appointed Group Director of Information

Services in October 2012 and, having established

FTSE in 1995, is also CEO of FTSE Russell.

Mark has been developing successful joint ventures

for more than 15 years and has forged alliances with

stock exchanges, academics and leading industry

groups. After beginning his career in local

government, Mark joined London Stock Exchange in

1985. He holds senior positions in several industry

bodies and is a Vice President of Unicef UK.

Waqas leads FTSE Russell’s global benchmark

business for fixed income and multi assets. This

includes overseeing the successful FTSE TMX joint

venture in North America and other fixed income

partnerships.

Waqas joined LSEG from Barclays, where he had run

the firm’s index and analytics business as CEO of

BRAIS (Barclays Risk Analytics & Index Solutions)

since joining the firm in 2007. He has been an active

voice in the index industry, serving as a board member

of the Index Industry Association. He has spent the last

23 years in the financial services industry, the last 12 of

which were in leadership roles in the index and

portfolio analytics industry.

Waqas Samad

CEO, Benchmarks,

Fixed Income and Multi Assets

Caroline joined LSEG in April 2015, taking up

responsibility for all sales, marketing and client

services activities globally for the Information

Services Division.

Caroline has more than 20 years of management

expertise leading global data and intelligent

information providers. At the Depository Trust &

Clearing Corporation (DTCC) from 2008, she was

Global Head of Sales and latterly Managing Director

Data Services. During her tenure at DTCC, Caroline

managed and developed a global enterprise sales

capability, leading sales teams in the UK, US and

Asia-Pacific. Prior to this, she was Global Head of

Alliances and Channel Development, Enterprise at

Thomson Reuters for six years, after spending eight

years serving in a similar role at Interactive Data.

Caroline O’Shaughnessy

Global Head, Sales & Marketing



Adding to his role as Director of Capital Markets,

Raffaele became CEO of Borsa Italiana in April 2010.

He was appointed to the Board of LSEG in June

2010. He is also Institore of the LSEGH (Italy) group

of companies.

Prior to joining Borsa Italiana in 1998, Raffaele had

been Head of Trading for Italian fixed income at

Credit Suisse First Boston since 1993. From 1996 he

was a member of the proprietary trading group in

London, while from 1997 to 1998 he was a Board

member of MTS, representing CSFB. Between 1989

and 1993 Raffaele was Head of Trading for fixed

income and derivatives at Cimo in Milan.

Michael Davie

Chairman, CurveGlobal

Raffaele Jerusalmi

CEO, Borsa Italiana

In October 2015, Michael became Head of Rates

Services, LSEG.

Michael was previously CEO of SwapClear, and prior

to that worked at JP Morgan from 1995 to 2010, in the

Fixed Income Markets division (Sales & Trading). He

also spent 10 years at IBM in Sales and Finance.

Michael is the Chairman of Governors of a large

private Catholic school in the UK, and was previously

a board director of Markit and TradeWeb.




Paddy was appointed as Head of FX Product

in 2016. He is a senior industry professional

having been Global Head of G10 FX Options

at Goldman Sachs.

Paddy was a member of the Bank of England

Joint Standing Committee on FX and also a

Board member of the Global FX Division of the

Global Financial Markets Association. More

recently he has been a Consulting Partner at

Turing Experts Limited involved in providing

expert witness analysis for regulatory and non-

regulatory investigations and litigation in FX.

Bruce joined LCH in September 2014 and is Global

Head of RepoClear and EquityClear. He also runs

Collateral and Liquidity Management, responsible for

investing and managing the cash and non-cash

collateral across the CCPs.

Prior to joining LCH, Bruce worked at Lloyds Banking

Group, most recently as Managing Director of Rates

Trading. He was also Interim Head of Trading for nine

months. During 20 years with Lloyds he was

instrumental in building a successful and focused rates

trading function and creating a leading GEMM (Gilt-

Edged Market Maker)

from scratch.

Bruce Kellaway

Global Head of

RepoClear,

EquityClear &

Collateral

Paddy Boyle

Global Head of

FXClear

Suneel assumed his role as Group Chief

Executive Officer of LCH in February 2014.

He is also a member of the Executive

Committee of LSEG.

Suneel gained more than 30 years of

experience at Citigroup, in trading, banking

and risk management. Most recently, he was

President and CEO, Citigroup Global Markets,

Japan. Suneel has worked around the world,

across asset classes and geographies in

delivering growth programmes and

implementing change.

Suneel Bakhshi

CEO, LCH Group

Daniel was appointed Group COO, LCH in April 2017.

He is also Global Head of Rates and FX Derivatives,

responsible for the world’s leading interest rate and FX

derivatives clearing services.

Daniel joined LCH in 1999, taking responsibility for

areas including programme delivery, management,

sales, marketing and operations. In 2010, he moved to

New York to lead the creation of LCH’s North America

operations and the successful build-out of

SwapClear’s client clearing franchise in the US. He

returned to the UK as Global Head of SwapClear in

March 2014, before taking on additional

responsibilities for Listed Rates and ForexClear.

Daniel left LCH in 2005 and returned in 2008, where

he was immediately responsible for the successful

trading and unwinding of Lehman Brothers’ LCH-

cleared bond and repo portfolio.

Daniel Maguire

COO, LCH Group

and Global Head of

Rates and FX

Derivatives

EBITDA margin

calculation ( Adjusted operating profit – Depreciation ) / Total income


Glossary

CY2016

Total income £1,657.1m

Adjusted operating profit (before amortisation of

purchased intangible assets and non-recurring items) £685.8m

Depreciation, software amortisation and impairment -£85.0m

EBITDA margin 46.5%

lseg investor presentation (for pf) · lch otc revenue growth to continue at double-digit 2017-2019...

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